Government Contracts FAC 2020-01 Final Rule Updates Commercial Item Definition
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Monday, November 11, 2019

FAC 2020-01 Final Rule Updates Commercial Item Definition

By Government Contracts Editorial Staff

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have issued Federal Acquisition Circular 2020-01, which contains one final rule amending the Federal Acquisition Regulation: Definition of “Commercial Item” (FAR Case 2018-008). The rule implements section 847 of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91). The FAC also contains a Small Entity Compliance Guide. The rule goes into effect on November 12, 2019. For the text of FAC 2020-01, see ¶70,002.212.

Expanded Use. Section 847 called for expanding the use of nondevelopmental items that qualify as commercial items to include items sold, in substantial quantities on a competitive basis, to multiple foreign governments. Accordingly, this rule expands the FAR 2.101 definition of “commercial item” to include NDIs sold to multiple foreign governments. According to the rule, this change will allow more acquisitions to fall under the definition of commercial item procurements and use standard commercial terms and conditions to the maximum extent practicable. The final rule makes no changes to the proposed rule (¶70,006.336).

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